Homepage > News > ASIC prohibits the sale of unsolicited products

ASIC prohibits the sale of unsolicited products

On Thursday, the Australian Securities and Exchange Commission (ASIC) released updated regulatory guidance on the retail ban on unsolicited financial products.

Under the new regulations, providers of financial instruments must obtain the client’s explicit consent when signing the contract. Moreover, it was added that support must be positive, free and clear. – These changes ensure fairness so that consumers are not sold products that they do not want or need. Restrictions mean that consumer needs will be critical to how companies offer products, said ASIC vice president Karen Chester.

The new regulations will come into force on October 5

The changes were implemented in line with the recommendations of the Royal Commission on Fraud in the banking, pension funds and financial services sectors. Their goal is to curb the growing number of phone contacts from salespeople and other forms of solicitation and offering. The new regulatory guidelines will be introduced under the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, which will enter into force on October 5.

According to Chester, the new ban addresses existing concerns about the problems customers may experience from purchasing unsolicited financial products. The reforms introduced by the government mean consumers will be able to control how and when products are offered to them, rather than being surprised or under pressure to make quick purchasing decisions.

The regulator focuses on consumer protection

ASIC emphasizes that it will present new guidelines for the industry that will show how to adapt to the new regulations. Interestingly, the Australian regulator has focused heavily on customer protection and actively limits risky financial products and practices. Previously, it introduced several restrictions to the CFD industry and temporarily banned the sale and distribution of binary options. “Under the new rules, ASIC will be better able to combat misconduct by companies where consumers are under pressure to buy unsuitable products for them,” said the vice-president.

Author: Zac Pittman

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.


Last news:

german economy

German Business Climate Dips, Indicating Looming Extended Recession

A successive drop in German business morale in June indicates an impending lengthier recession for ...
ropa naftowa

Nigeria’s Oil Market Faces Crisis as Half of Output Goes Unpurchased

The Nigerian oil market is currently facing a significant surplus, with nearly half of next ...
Week for Wall Street

Stock Futures Fall, Investors Eye Powell’s Testimony

Stock futures are indicating a downtrend ahead of the Federal Reserve Chair, Jerome Powell's second ...

Euro Maintains Position Despite Russia’s Drastic Reduction in Use – ECB Report

Despite Russia's significant reduction in its use, the Euro stood its ground as the world's ...

Add a comment

Your email address will not be published. Required fields are marked *


Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top